ITO, Calicut V. Daughters of Mary Bathery, Calicut

ITA 96/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64817 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 03-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA; 12; 11

Judgement Text

1 ITA NO. 94&95 TO 99/COCH/2011 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKARA N(AM) I.T.A NOS. 94/COCH/2011 (ASSESSMENT YEAR 2002-03) ITO, WD.1(4) VS M/S NORBERT HOUSE CALICUT KUZHINILAM, MANANTHAVADY PAN : AAATN4291N (APPELLANT) (RESPONDENT) I.T.A NOS. 97/COCH/2011 (ASSESSMENT YEAR 2002-03) THE ITO, WD.1(4) VS M/S DARUL FALAHIL ISLAMIYYA CALICUT AL FALAHIL ISLAMIC COMPLEX KALPETTA PAN : AAAAD2270N (APPELLANT) (RESPONDENT) I.T.A NOS. 98 & 99/COCH/2011 (ASSESSMENT YEARS 2002-03 & 2001-02) THE ITO, WD.1(4) VS M/S KARMEL NIKETAN NAVITIATE CALICUT KARTIKULAM, MANANTHAVADY PAN : AAATK2646Q (APPELLANT) (RESPONDENT) REVENUE BY : SHRI PRATAP NARAYAN SHARMA ASSESSEE BY : NONE WRITTEN SUBMISSIONS 2 ITA NO. 94&95 TO 99/COCH/2011 I.T.A NOS. 96/COCH/2011 (ASSESSMENT YEAR 2002-03) THE ITO, WD.1(4) VS M/S DAUGHTERS OF MARY BATHE RY CALICUT MARY MATHA CONVENT SULTAN BATHERY PAN : AAATD2053Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRATAP NARAYAN SHARMA RESPONDENT BY : SHRI SL KURIAKOSE DATE OF HEARING : 27-08-2012 DATE OF PRONOUNCEMENT : 07-09-2012 O R D E R PER N.R.S. GANESAN (JM) ALL THE APPEALS ARE DIRECTED AGAINST THE INDEPENDE NT ORDERS OF THE FIRST APPELLATE AUTHORITY IN THE CASE OF FOUR INDEPENDENT TAXPAYERS. SINCE COMMON ISSUE ARISES IN ALL THESE APPEALS WE HEARD THEM TOG ETHER AND DISPOSE OF THE SAME BY THIS COMMON ORDER. 2. EXCEPT IN ITA NO.96/COCH/2011 NO ONE APPEARED IN RESPECT OF OTHER APPEALS IN SPITE OF ISSUE OF NOTICE. HOWEVER, WRIT TEN SUBMISSIONS WERE FILED BY THE RESPECTIVE TAXPAYERS. THEREFORE, WE HEARD THE LD.DR AND SHRI L KURIAKOSE, THE LD.COUNSEL FOR THE TAXPAYER IN ITA NO.96/COCH/2011 AND CONSIDERED THE WRITTEN SUBMISSIONS FILED BY OTHER TAXPAYERS AND PROCEED TO DISPOSE OF THE APPEALS ON MERIT. 3 ITA NO. 94&95 TO 99/COCH/2011 3. ALL THE TAXPAYERS ARE ASSESSED AS TRUSTS REGISTE RED U/S 12AA OF THE ACT. THE ASSESSING OFFICER DISALLOWED THE CLAIM OF THE A SSESSEE FOR EXEMPTIONS U/S 11 AND 12 ON THE GROUND THAT THE TAXPAYERS ARE ENGAGED IN COMPOSITE ACTIVITY OF RELIGIOUS AND CHARITABLE. THE FIRST APPELLATE AUTH ORITY AFTER FOLLOWING THE ORDERS OF THIS TRIBUNAL ALLOWED THE CLAIM OF THE TAXPAYER ON THE GROUND THAT EVEN THOUGH A COMPOSITE ACTIVITY OF RELIGIOUS AND CHARITABLE IS CARRIED ON, THE SAME IS ENTITLED FOR EXEMPTION. 4. SHRI L KURIAKOSE, THE LD.COUNSEL FOR THE TAXPAYER IN ITA NO.96/COCH/2011 SUBMITTED THAT THE ORDER OF THIS TRIBUNAL IS CONFIR MED BY THE JURISDICTIONAL HIGH COURT. THE APPEAL FILED BY THE REVENUE BEFORE THE APEX COURT WAS ALSO DISMISSED. THE LD.REPRESENTATIVE HAS FILED THE COPIES OF THE J UDGMENT OF THE KERALA HIGH COURT AND THE APEX COURT. 5. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE LD.DR AND THE LD.COUNSEL FOR THE TAXPAYER, SHRI L KURIAKOSE AND ALS O PERUSED THE MATERIAL ON RECORD. ADMITTEDLY, THIS TRIBUNAL BY A MAJORITY DE CISION FOUND THAT WHEN THE TAXPAYER WAS ENGAGED IN RELIGIOUS AND CHARITABLE AC TIVITY IS ENTITLED FOR EXEMPTIONS U/S 11 & 12 OF THE ACT. ON APPEAL BY TH E REVENUE, THE KERALA HIGH COURT DISMISSED THE APPEAL OF THE REVENUE CONFIRMIN G THE ORDER OF THE TRIBUNAL HOLDING THAT WHEN THE EXEMPTION IS AVAILABLE TO BOT H THESE ACTIVITIES, VIZ. RELIGIOUS AND CHARITABLE, THERE IS NO REASON TO DEN Y THE EXEMPTION WHEN THE INSTITUTION WAS ENGAGED IN BOTH RELIGIOUS AND CHARI TABLE ACTIVITY. THE REVENUE AGAIN TOOK THE MATTER BEFORE APEX COURT BY WAY OF SP ECIAL LEAVE PETITION. THE SPECIAL LEAVE PETITION IS ALSO DISMISSED. THEREFOR E, IT IS OBVIOUS THAT THE ORDER PASSED BY THIS TRIBUNAL HOLDING THAT THE TAXPAYERS ARE ENTITLED FOR EXEMPTION U/S 11 & 12 WHEN A COMPOSITE ACTIVITY OF RELIGIOUS AND CHARITABLE WAS CARRIED ON IS 4 ITA NO. 94&95 TO 99/COCH/2011 CONFIRMED BY HIGH COURT AND APEX COURT. IN VIEW OF THE ABOVE WE DO NOT FIND ANY INFIRMITY IN THE ORDERS OF THE LOWER AUTHORITY. ACCORDINGLY ALL THE APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 07 TH SEPTEMBER, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 07 TH SEPTEMBER, 2012 PK/- COPY TO: 1. THE APPELLANTS 2. THE RESPONDENTS 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH